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Discussion Starter #1
been offered a new job:D

think am gonna take it but the offer came with a car allowance, don't really know what one is or what is a realistic amount.

how much is okay ?

(sorry if this not a question your meant to ask people)
 

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That's a bit of a "how long is a piece of string" question. We offer a range dependent upon grade from £5k up to £11k per annum.
 
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We offer a range dependent upon grade from £5k up to £11k per annum.
Stingy.






:p





Car allowance is the amount a company bribes you not to have a company car.
It should include all your business motoring costs except fuel, parking and road-tolls.

So don't forget to factor in tyres, insurance, road tax, oil, servicing etc.
 

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Discussion Starter #4
So do I get fuel on top?

I just don't want to look a fool right away, like to wait a few weeks first
 

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So do I get fuel on top?

I just don't want to look a fool right away, like to wait a few weeks first

Depends upon the T&C's ... some car allowances are just for the car and you can claim mileage on top, others are fully inclusive ... so yes how long is a piece of string???

Also what you might find is that the car you buy HAS to meet certain factors, normally age!!!
 

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Discussion Starter #6
what you might find is that the car you buy HAS to meet certain factors, normally age!!!
was wondering about that but as I don't want replace mine yet:( but I don't see how this could be enforced while still in the 1 year probation

will have to ask I suppose
 
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The thing to remember is that a car allowance of say £8k does not mean that your employer expects you to purchase and run an £8k car. Instead they draw a parallel with if you had chosen a company car so imagine company cars are handed out on a three year lease then your company will extrapolate and say that over that same period you could have bought a £24k car. In actual fact you're better off still because as this kind if setup encourages people into pcp or pch arrangements whereby you can either buy a cheap car and pocket the extra cash or get a more expensive car than a straight £24k cash purchase would affird you. Now this is fairly simplistic but broadly correct. There are other factors such as is mileage included and certainly for business purposes it shouldn't be, and is the amount gross or net of tax.

By the way an £11k car allowance is far from stingy ! That's £900+ per month at gross assuming a 36 month comparison.
 

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was wondering about that but as I don't want replace mine yet:( but I don't see how this could be enforced while still in the 1 year probation

will have to ask I suppose

Don't worry about asking questions (no matter how stupid you think they sound), it looks better to ask questions because that makes it looks like you've thought about it ... also another thing to consider when starting a new job is that everyone in the company wants you to succeed!!! because if you don't it is them that look bad not you
 
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By the way an £11k car allowance is far from stingy ! That's £900+ per month at gross assuming a 36 month comparison.
Heh Heh Heh. :p

I was just having a dig at V-Daddy. ;)


(Vive La France!!!)
 

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Who said I was in the staff range? ;)
 

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I've had that bribe before today :D

Like most folks say, think about your milage and how much motoring actually costs you a year
don't forget the extra bits like servicing, tyres etc :thumbs:
 

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You might get a fuel card, which is fine in principle, but you get taxed on it as a perk. Better to have a mileage allowance for the fuel if you are doing miles on behalf of the company.

also, don't forget that if you are using your own car for company purposes, you need to inform your insurance, and it may increase, so you need to take this into account as well.

If you can get a generous car allowance, you can afford to run a reasonable car, have it serviced, tyres, etc, for the amount you get plus you should make a certain amount of profit if you are thrifty!

My husband runs his 156GTA on his. Although it is a 2002 model, because it is a prestige car, he gets away with the age. In theory though, you are supposed to have a car no more than 4 yrs old. Plus he has a personal number on it, so who'd know .... unless you're an Alfa geek!
 
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I get ~350p/m + a fuel card which I am taxed on. Depends on the company I guess. I run 2 cars and a bike and that extra doesn't go as far as you'd think.
 

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You might get a fuel card, which is fine in principle, but you get taxed on it as a perk. Better to have a mileage allowance for the fuel if you are doing miles on behalf of the company.

also, don't forget that if you are using your own car for company purposes, you need to inform your insurance, and it may increase, so you need to take this into account as well.

If you can get a generous car allowance, you can afford to run a reasonable car, have it serviced, tyres, etc, for the amount you get plus you should make a certain amount of profit if you are thrifty!

My husband runs his 156GTA on his. Although it is a 2002 model, because it is a prestige car, he gets away with the age. In theory though, you are supposed to have a car no more than 4 yrs old. Plus he has a personal number on it, so who'd know .... unless you're an Alfa geek!
Good points there Mrs A

I only paid an extra £20 to have the insurance changed and I did make a few bob when I had the car allowance for the GT :thumbs:
 
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Lots of good points raised here. The key thing is will you have to use the car for a lot of work travelling, or is it just a "perk"? I get a car allowance but do no travelling for work (I mainly work from home), so it is more of a perk. So the cost of running a car on it are irrelevant to me, its just part of my income. But if you will be using this for work and you are not getting a company car, then you need to make sure you will be able to cover the running costs of an appropriate car. Fuel costs are not included in the car allowance. This will be separate, either through a fuel card or through you claiming back business mileage. My company gives us a mileage allowance to reclaim business use which is based on engine size and is supposed to cover fuel and running costs.

Make sure you read the small print (or ask about it). Even though we get an allowance, specific types of car are excluded (eg coupes, convertibles, performance cars etc), our contract says we have to use the allowance toi get a car that is suitable for carrying clients in. Most people here ignore that but it is worth checking.

The ranges here are similar to V Daddy's, and they are based on lease values (here, you can either lease a car through the company scheme or take the cash alternative).

Cheers,

Nigel
 

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No advice to add that you haven't already had, just wanted to say congratulations on your new job:thumbs:
 

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I get ~350p/m + a fuel card which I am taxed on. Depends on the company I guess. I run 2 cars and a bike and that extra doesn't go as far as you'd think.
then you need to make sure you will be able to cover the running costs of an appropriate car.
Just a point, the net amount is not supposed to cover the entire cost of financing and running a car. It is supposed to put you in an equivalent net position (after tax) compared with taken the appropriate company car for the job/grade. Or it may even just be considered a contribution.

So, broadly speaking, if you are a basic rate tax payer, £350 is actually worth £437.50 per month, at higher rate it's worth £583.33, or a top rate rate £700.

You'd be heavily taxed on the car, and you need to take that into account when assessing whether your car allowance is fair or not.
 
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